Organization of Excel Files: A significant portion of your grade will depend on how you display and organize your Excel files.

Organization of Excel Files: A significant portion of your grade will depend on how you display and organize your Excel files. A well-structured file should include Excel formulas, clear references to assumptions, and effective color-coding. This formatting is essential to distinguish between header rows, assumptions, and calculations. Please include the legal scenario, and all other scenarios as their own separate tab.
Negative Net Working Capital: Negative Net Working Capital (NWC) is not necessarily a problem. If this is happening to you first, check if you’ve inadvertently included cash in your current assets – I did in the template file so there’s a good chance you might be as well. If that doesn’t resolve the issue, assume 10% of sales as a conservative approach.
Impact of the $300 Million Investment: The $300 million investment is considered a sunk cost. Sunk costs have no bearing on future decisions; they should not influence your decision-making process. Whether you proceed with the project or not, this investment is a historical expense and won’t affect your future actions. This concept was not covered in class, so consider this as additional guidance.
The WACC in the project is the discount rate
In question 6 the probability of the legal case is 20%, there is a typo whereby it says 5% early in the problem.